How to keep saving on your car insurance

How much you pay for insurance can make a sizeable difference to the overall cost of owning a car, so it’s important not to pay more than you need to. I just renewed my premium, so got to thinking that I needed to share some tips on keeping premiums as low as possible. Of course I went to a comparison website and saved over £200 off the quote last year’s provider gave me for renewal, but there are plenty of other things to consider.

Here are our top tips to avoid over-spending on insurance:

Factor in insurance from the start

It’s easy to be seduced by the upfront price of a new car, but remember that it doesn’t include the cost of insuring it for the road.

The more powerful and more valuable your car, the more expensive it is likely to be to insure, so don’t stretch yourself to the biggest list price you can manage, as your insurance premiums may come as a surprise.

Steer clear of modifications

The more powerful and more valuable your car, the more expensive it is likely to be to insure. Souped-up engines, advanced in-car entertainment systems, and even leather upholstery can all bump up the cost of your premium.

If you’re considering modifying your car, or buying a used car that has been modified, it’s important to check what effect the extras will have on your premiums.

Once you have an idea of the difference in premium from a more standard model, work out what the total cost will be over the length of time you expect to own the car – this will tell you roughly what the true cost is. Knowing this, you can make an informed decision about whether they’re really worth it.

Honesty’s the best policy

Your insurance is there to help you get through unfortunate events that could otherwise cost you large amounts of money. However tempting it may be to shave a few pounds off your premium by fibbing about the details, it could turn out to be a false economy.

If you get caught being dishonest, your insurer has the right to decline claims, cancel your policy, or charge you the correct premium as a lump sum. If your policy is cancelled, you’ll need to declare this on future applications, which can make finding affordable insurance more difficult in future.

So the wisest move is to play safe and be completely honest – that way you can be sure you have the right level of cover for your needs.

Get to grips with your mileage

How far do you drive in a typical year? It’s a difficult thing to guess off the top of your head, but that’s what a lot of people do when they apply for cover.

Mileage can play a part in setting your premium, so if you overestimate you may end up paying more than you need to. On the other hand, if your guess is actually way under the realistic distance, this could mean you’re not covered.

The best way is to look at the odometer in your car to check how many miles you clock up in a known period of time and use this to work out how far you really go in a year. Another easy way is to check your service history documents, as these should include yearly mileage.

Park your car off the road if you can

Another factor that can play a part in setting your premium is where your car ‘sleeps’. Owners who use a driveway or garage could pay less on average than those who keep their car parked on the street.

But if off-road parking’s not an option for you, don’t be tempted to fib, as this could lead to you not receiving a pay-out if you do need to make a claim.